Remove Customer Development Remove Deal Structure Remove Revenue Remove Startup
article thumbnail

Should You Co-Found Your Company With a Software Development Shop (2 of 2)?

David Teten

I’ve talked with a number of software development shops who are eager to get into the business of cofounding companies, i.e., getting product revenue and equity instead of just consulting revenue. How would one set up such a startup to eventually raise capital from outside VCs, who will be wary of ‘dead equity’ (i.e.,

article thumbnail

Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

I think it’s difficult, if not impossible, to value a pre-revenue company with any reasonable accuracy. The company did have some revenue and paying users, but not enough to make any judgement on the company’s future prospects. The company with all the revenue is Company C. Top 3 Ways to Fail at Customer Development.